Press Release

VIS Reaffirms Fund Stability Rating of UBL Income Opportunity Fund

Karachi, December 31, 2019: VIS Credit Rating Company Limited (VIS) has reaffirmed the Fund Stability Rating (FSR) of UBL Income Opportunity Fund (UIOF) at ‘A-(f)’ (Single A Minus (f)). The previous rating action was announced on December 31, 2018.

UIOF is designed as an income fund with an objective of generating competitive returns primarily through investment in cash & near cash instruments, government securities, bank deposits and TFC/Sukuk. The assigned rating factors in the fund’s policy to invest in avenues rated “A” and above, apart from TFC/Sukuk where credit risk exposure is capped at ‘AA’ and above. Actual asset allocation has remained in line with defined policy guidelines and with the assigned ratings criteria. Weighted Average Maturity (WAM) of the fund’s assets has been capped at 4 years whereas duration of the fund can extend up to 1.5 years. In line with investment mandate, weighted average maturity (WAM) of the fund remained at less than four years.

Net assets of the fund increased to Rs. 833m (FY17: Rs. 557m) at end-FY19. However, fund size declined to Rs. 511m at end-November 2019. With sizeable exposure of the fund in liquid avenues, ability of the fund to meet redemptions is considered adequate.

For further information on this rating announcement, please contact Mr. Talha Iqbal (Ext: 213) or the undersigned (Ext: 201) at (021) 35311861-66 or email at info@vis.com.pk.


Javed Callea
Advisor

Applicable Rating Criteria: Fund Stability Ratings (September 2018)
https://s3-us-west 2.amazonaws.com/backupsqlvis/docs/Fund%20stability%20Rating092018.pdf

Information herein was obtained from sources believed to be accurate and reliable; however, VIS Credit Rating Company Limited (VIS) does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information.VIS , the analysts involved in the rating process and members of its rating committee do not have any conflict of interest relating to the rating(s)/ranking(s) mentioned in this report.VIS is paid a fee for most rating assignments. This rating/ranking is an opinion and is not a recommendation to buy or sell any securities. Copyright 2019 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .